Canadian Prime Minister Mark Carney announced Wednesday new supports for the steel and lumber industries hit hard by U.S. tariffs.
U.S. President Donald Trump has imposed 50% tariffs on steel and softwood lumber, long subject to U.S. tariffs, is currently taxed at 45% after the Trump administration’s hike last month.
Carney said the decades-long process of an ever-closer economic relationship between Canada and the United States is now over.
"As a consequence, many of our strengths have become vulnerabilities. Last year, more than 75% of our exports went to the United States. 90% of our lumber exports, 90% of our aluminum exports, and 90% of our steel exports, all bound for a single market,” Carney said.
"We must protect our workers and industries who are most exposed to U.S. tariffs," he said.
The plan tightens the quota on steel imports from countries that don’t have free-trade pacts with Canada from 50% to 20% of 2024 levels.
Carney also said the federal government is offering an extra $500 million Canadian ($356 million) in loan guarantees to the softwood lumber industry on top of other measures to encourage homebuilders to use made-in-Canada materials.
Starting next spring, Ottawa will also subsidize freight fees on any rail shipments of steel and lumber across provincial borders to build up the domestic industry as Trump’s trade aggression cuts off the lucrative U.S. market.
"We will make it more affordable to transport Canadian steel and lumber across the country by cutting freight rates,” Carney said.
Trump cut off trade talks with Canada last month after the Ontario provincial government ran television advertisements in U.S. markets that criticize Trump’s tariffs by citing a speech by former U.S. President Ronald Reagan.
Carney said he’ll be in Washington for the final draw on Dec. 5 for the FIFA World Cup 2026 tournament. He said he’ll speak to Trump then and said he spoke briefly to the president on Tuesday.
"We are ready to re-engage on those talks when the United States wants to re-engage,” Carney said.
